I saw a falling star last night and it reminded me of our Alaska Marine Highway System. Both are in a free fall.
We cannot do much about the star, but maybe we can rescue our ferry system.
We cannot continue to serve coastal communities with an ever-increasing subsidy. Significant fare increases have caused a substantial decline in ridership, fewer sailings and fewer ships operating. More than half of the fleet is laid up.
Rather than elaborate as to the failures of past and current administrations and the lack of timely decisions, while yet another consultant is hired or another advisory committee is established, it is my intent to urge Southeast to reflect on the harsh reality of doing nothing.
The mainliners will be scrapped and the Malaspina may be a reef. The Taku was sold for $171,000, yet it was able to sail to India. The two fast ferries sold for $5 million each cost almost $60 million to build. The road ahead is about to come to a dead-end unless we work together on a solution.
Hopefully, my proposal can be a start.
My proposal is going to require money, coordination and cooperation among Ketchikan, Wrangell, Petersburg, Sitka, Juneau, Haines and Skagway. The first step is to ascertain just how important the ferry system is to each community. What does it mean to the local economy and how much does it depend on the ferry system? What kind of a future would the community have without the ferries? Does the community believe that a new Southeast marine highway authority could be formed with each of the seven communities participating?
Here's how it might work: The authority could lease three vessels from the state. Each community would hold an equity ownership in the authority, with the larger communities having a larger percentage.
The authority would also take over the terminals and operate a centralized reservation system. The mainline vessels would operate with departures in season twice a week from Prince Rupert, British Columbia. and Bellingham, Washington. This would provide a service for visitors and Alaskans throughout the state, sufficient to accommodate campers, trucks, trailers and automobiles.
Recognizing that the proposal's success is dependent on adequate funding, a type of revenue bonding might be crafted. I have contacted bonding underwriters, and they suggest the initial offering might be for a term of three years.
Each of the communities would guarantee a portion of the revenue bond equal to their equity ownership of the authority. The bonds might be sold to the Alaska Industrial Development and Export Authority or the Alaska Permanent Fund. Repayment would come from ferry revenue and community bed tax and sales tax receipts.
The state would continue
to fund a portion of the system's expense based on a
per-mile fee. A new labor contract would have to be negotiated.
The extent of the subsidy can only be estimated. Subsidies are a reality to virtually all forms of transportation. Even Alaska Airlines receives a federal subsidy for service to Cordova, Yakutat, Petersburg and Wrangell.
I have outlined this draft proposal in hopes it will stimulate dialogue that will help rejuvenate Southeast by providing reliable marine highway access.
I am aware that the effort may have to overcome difficult hurdles, but I'm reminded of an old political saying: "The best government is the one closest to home. And my favorite: "Alaskans are hardy because we have to be."
Frank Murkowski served as governor of Alaska 2002-2006, and as U.S. senator for Alaska 1981-2002.
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